US Taps Strategic Petroleum Reserve Amid Middle East Conflict

The Trump administration plans to loan up to 92.5 million barrels from the Strategic Petroleum Reserve to stabilize oil markets affected by the war with Iran. Previous agreements involved releasing 172 million barrels as part of international efforts. Rising oil prices pose political risks for Trump's Republicans ahead of the elections.

The Trump administration is moving to loan up to 92.5 million barrels of crude from the Strategic Petroleum Reserve to energy companies. The aim is to calm oil markets, hit hard by the war with Iran, a senior official confirmed on Thursday.

In March, the U.S. agreed to loan 172 million barrels from the SPR as part of a broader international strategy with over 30 countries in the International Energy Agency to release around 400 million barrels. Fatih Birol, the IEA's head, labelled this crisis the worst supply disruption in history. Until Thursday, the U.S. had offered 126 million barrels in three batches, but oil companies only secured less than 80 million barrels, about 63% of what was initially offered.

If fully utilized, the new offer would meet the U.S. commitment to loan 172 million barrels. Despite reserve releases, global oil prices surged to a four-year peak of over $126 a barrel Thursday, amid fears of prolonged Middle East supply issues. The SPR, stored in salt caverns across Texas and Louisiana, currently holds nearly 398 million barrels, enough to satiate the world’s demand for four days.